Untangling the web of car buying demand and how dealers are adapting in real time

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Welcome to the Market Pulse—your cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

Truck demand isn’t cooling despite higher MSRPs: Full-size and midsize pickups continue anchoring volume, with F-Series topping 828K units and Tacoma up over 40% YoY.
Hybrids are converting interest faster than EVs: 33% of consumers say they’re open to buying a hybrid in the near term, compared to 16% for fully electric.
Dealers are prioritizing structure over volume: This includes stocking vehicles with stronger book values, leading with payment over MSRP, and pairing every new unit with a viable pre-owned alternative.

(Source: TransUnion / Cox Automotive / OEM sales reports / KBB / Electrek / Car and Driver / USA Today / Ernst & Young)

Trucks and core ICE models are still carrying the bulk of new-vehicle volume.

Recently, we reviewed full-year 2025 sales data from Ford, GM, Stellantis, and Toyota to see where new-vehicle demand is actually concentrating.

Here’s what we found: ICE models continue to anchor volume, aligning with TransUnion’s latest survey showing roughly 50% of shoppers still prefer gas-powered vehicles in the near term.

More specifically, these were some of the strongest movers last year:

Ford F-Series — 828,832 units, up 8.3% YoY
Chevrolet Silverado — 558,709 units
Ram Pickup — 374,059 units, essentially flat vs 2024
GMC Sierra — 366,218 units, up 9.7% YoY
Toyota Tacoma — 274,638 units, up 42.4% YoY

Translation: A meaningful share of buyers are still willing to transact at higher MSRPs when the vehicle delivers clear utility via towing capacity, durability, resale strength, or everyday functionality.

NOTE TO DEALERS:

If trucks anchor your volume:

Audit how often your team is leading with payment vs MSRP in truck deals.
Avoid overloading on cosmetic packages that inflate MSRP but don’t protect value.
And lean into trade equity conversations early, because replacement buyers are more willing to transact when they see clear value in their current vehicle.

Hybrids are gaining traction while EV demand stays selective.

When we zoomed in on electrified demand using one of TransUnion’s consumer surveys, 33% of shoppers said they’re considering a hybrid in the near term vs 16% for fully electric vehicles.

And the sales data backs that up:

Toyota reported ~316.2K Camry Hybrid units sold in 2025, up 2% YoY
Toyota’s RAV4 Hybrid came in around 240K units, making it one of the highest-volume electrified SUVs in the country
Ford’s Maverick Hybrid totaled ~81K units, up 17.9% YoY
And the F-150 Hybrid reached ~85K units, climbing 15% vs 2024

On the other hand, these popular EV models saw more uneven performance in 2025:

Tesla Model Y — 357,528 units, down 4% YoY
Ford Mustang Mach-E — 51,620 units, essentially flat (down 0.2%).
Tesla Model 3 — 189,903 units, up 1.3% YoY

WHY IT MATTERS:

Hybrid ATPs (~$42K) sit well below the broader market, while delivering 40–50+ MPG with zero charging friction.

And that’s exactly the message (and simplicity) every dealership carrying hybrids should be pushing right now.

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To get some extra insight on how dealers are approaching current consumer demand, I reached out to Rob Lisowski, General Sales Manager of Gallatin CDJR.

Here are some of the Dos and Don’ts he offered:

Do: Structure inventory around lender math.

With nearly 30% of trade-ins underwater and average negative equity at $7,214 (per Edmunds), Lisowski says book positioning matters more than ever.

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“We look for vehicles where the MMR sits below clean trade and retail book is inflated. That spread gives us the best shot at absorbing negative equity and getting a deal through the bank.”

Rob Lisowski

Do: Come to every deal with a strong pre-owned option, even for new-vehicle shoppers.

“Supply under $20,000 is razor thin, and with the last entry-level new car (the Nissan Versa) discontinued late last year, there’s nowhere left for the budget buyer to go except pre-owned,” Lisowski told me.

In other words, buyers may walk in asking about new, but many are payment-driven.

But when a dealership can show them a well-matched pre-owned option that checks the same boxes and lands lower per month, it does two things: keeps deals alive and adds to the shopper’s trust in the dealer.

Do: Be intentional with which add-ons are offered.

As Lisowski put it, “domestic SUVs with the right add packages tend to carry more book, and we’ve been leaning into CPO certification to add further book value and open the door with lenders.”

All he means by that is: When a unit carries stronger book value, it gives dealers more room with lenders, more flexibility with negative equity, and more protection on the back end.

Don’t: Forget about the existing brand loyalty trends.

J.D. Power reported loyalty fell to 49% in 2025, with roughly 70% of replacement buyers switching brands.

In Lisowski’s words: “That means conquest is on the table every deal, but it also means retention requires intentional effort.”

”The customers who stick are the ones who trust who they’re buying from, trust the vehicle, and leave feeling like the deal made sense for their situation…that’s how we’re thinking about it at Gallatin.”

Sometimes this industry feels wildly complex. But right now, the demand out there isn’t confusing at all.

That’s why, if I’m a dealership, I’m asking myself/my team:

Are we stocked correctly across trucks, SUVs, and hybrids?
Which trims are actually turning and why?
And do we have strong pre-owned alternatives ready for every new unit we’re pushing?

If not, I’d start applying the signals the market is offering in a simpler, more disciplined way.